UK: Another surprise inflation data - ING
James Knightley, Chief International Economist at ING, notes that UK headline consumer price inflation has jumped from 2.5% to 2.7% in August and is the fastest pace of inflation since February and is a fair bit above the 2.4% market consensus.
Key Quotes
“To highlight the surprise of this report, not a single economist out of 36 surveyed by Bloomberg predicted it would come in this high. The core rate, which excludes food and energy components saw a similar miss. The annual rate rose to 2.1% from 1.9% rather than drop to 1.8% as predicted.”
“If today’s inflation rise is due to currency, the momentum should fade. Instead, we think it is largely noise with inflation set to return to the 2% target early next year.”
“Either way, the economy continues to underperform key partners, and inflation remains broadly in line with the Bank of England’s target.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
